Dubbed Digits, the new project in some ways resembles services from Googlegoogl, Skype msft, and others that allow users to make and receive calls on multiple devices with one number. But T-Mobile’s solution, which will be rolled out to all customers early next year, uses the core phone network and doesn’t rely on workarounds that mess up caller ID and other telephony functions.

Beta testers will be able to assign their T-Mobile number on up to five devices--including phones, tablets and personal computers--to make and receive calls and texts. Users will also be able to assign up to five numbers to any one device. And those devices don’t have to be on T-Mobile’s network-users can assign their Digits numbers to phones getting service from Verizonvz, Sprint s, or AT&Tt. Everything will be controlled from the “My T-Mobile” section of T-Mobile’s web site, and eventually via a related app.

T-Mobile tmus customers can sign up for the beta test starting on Wednesday. During the test the service will be free, but some fee is likely once Digits is available to all T-Mobile customers, T-Mobile chief operating officer Mike Sievert tells Fortune.

“Expect it will be simple and it will be disruptive,” Sievert says without giving away the details.

T-Mobile, the nation’s third-largest carrier, has gained a reputation for bucking industry conventions under CEO John Legere. So far Legere’s “un-carrier” strategy has worked, as the company has doubled its customer base and nearly quadrupled its stock price. Lately, that success prompted a host of M&A speculation that other wireless companies, cable companies, or even big tech companies might want to buy T-Mobile from majority-owner Deutsche Telekom.

With the Digits project, the separation of phone numbers from physical devices means that call histories, voice mails, past text messages, and contact lists can be accessed from anywhere as well. That may come in handy for businesses that want to assign numbers to employees’ mobile phones and have them access contact lists without giving up control of the data, Sievert says.

Digits also breaks the connection between a phone number and the SIM card in a phone, making it much easier to have multiple phones on one account. That could prompt people to use a greater diversity of phone form factors, Sievert thinks. “You could have different devices for different aspects of your lifestyle,” he says. “This is my itty bitty phone for nights out on the town. This is my waterproof phone for the beach.”

Still, that vision may be a stretch in an age when calling--and increasingly even texting--have been overtaken by more app-based communications platforms like Snapchat, Instagram fb, and WhatsApp.

And T-Mobile says it had to re-engineer its calling and identity management systems, with multiple pending patents covering the technology. So the company is unlikely to be sharing the technology with other carriers.

“There are a ton of patents around this,” T-Mobile chief technology officer Neville Ray tells Fortune. “I’m not saying others couldn’t do it. It’s going to take them some time.”

That may give T-Mobile an advantage in wooing customers, but it also prevents the notion of unconnected numbers and devices from becoming ubiquitous.

The goal was to create a simple service and hide the technological reshuffling of core telephone systems “There’s a lot of technology behind the scenes that we are not asking the customer to solve or manage,” Ray explains.

For a look at one of Legere’s early marketing efforts at T-Mobile, watch:

On most devices, Digits users will have to make calls and texts with an app or via a web browser. Only Samsung’s Galaxy S6, S7, and Note 5 devices have native support for Digits built into the phone dialing software, though T-Mobile said it is working to add that level of integration to other manufacturers phones.

One potential hitch in the early going is that Digits is not compatible with Apple’s aapl popular iMessage network for text messaging. A Digits user with an iPhone or iPad would have to turn off iMessage functionality to get all of the T-Mobile features, such as the synched texting history on every device. T-Mobile is talking to Appleaapl about adding full compatibility with iMessage as well as iPhone dialer integration. Apple already mimics some of the Digits features via what it calls iCloud wi-fi calling.

Still, T-Mobile is pressing for greater integration with Digits. “We’d love to see it,” Sievert says. “These are very close partners of ours.”

]]>http://fortune.com/2016/12/07/t-mobile-phone-numbers-free-digits/feed/0Inside A T-Mobile US Inc. Store Ahead Of Earnings FiguresampressmanStop Waiting for Your Billion-Dollar Idea and Do This Insteadhttp://fortune.com/2016/12/06/billion-dollar-idea-marketing/
http://fortune.com/2016/12/06/billion-dollar-idea-marketing/#respondTue, 06 Dec 2016 16:35:07 +0000http://fortune.com/?p=1875762]]>Conventional wisdom says that if entrepreneurs want to be successful they should strive to create breakthrough tech products in new and huge markets.

Conventional wisdom is wrong.

Yes, it's incredible when an entrepreneur develops a billion-dollar technology that changes the world and defines a new category of a business, but it's also rare. Consider that fewer than 200 tech startups are valued at $1 billion or more right now. That's right — just 200 out of all the startups out there have reached unicorn status. The chances of you starting one are slim. You have a greater chance of being struck by lightning.

What wannabe entrepreneurs often fail to see is that you don't have to aim to be a billion-dollar company, start a new market from scratch, or create a breakthrough product. You can start with something you already love and know well, copy the existing products out there, and focus your energy on creative marketing.

This approach works because it puts the odds in your favor. Rather than taking on a big product and market risk, you copy what already works in markets that are already proven. This frees up resources to focus on being the best marketing innovator in your niche.

The challenge with this approach, of course, is that large, competitive markets tend to have well-funded, well-branded competitors. Fortunately, small bootstrapped startups have two advantages: speed and edginess. Startups can go from decision to action in just hours. Large companies, on the other hand, are almost never early adopters because of risk-aversion and decision inertia.

Being an early adopter is powerful because there's less noise from other marketers and more curiosity from users who want to explore. In just the last year, Facebook made a major change to its newsfeed algorithm and created bots and instant articles. Instagram released a new direct-response ad product. Snapchat went mainstream. All of these are opportunities for startups looking for creative marketing opportunities.

Being an early adopter was how my company, Travel Ticker, broke into the crowded travel space almost a year ago. When we launched, we were looking for ways to help our company's marketing go viral. We saw the YouTube videos of two of the best rooftoppers in the word, Ivan Kuznetsov and Oleg Cricket, and knew we had to work with them. So, we offered to pay for a trip for them to anywhere in the world to record their next stunt if we could put it on our YouTube channel. They ended up recording themselves climbing the Eiffel Tower and walking, flipping, jumping, and doing handstands on ledges of skyscrapers across the world. That one campaign has led to over 17 million views across all media platforms and has been an incredible investment for us.

Time and time again, we've all seen strong brands emerge from creative marketing. For example, Helloflo, a feminine care product brand, went from less than $100,000 in revenue to more than $1 million with just two viral videos. Launched in 2014, it was acquired by SheKnowsMedia this year. DJ Khaled became a mainstream personality by being an early adopter of Snapchat. Finally, 14 months after launching, the Dollar Shave Club posted their first video to YouTube. That one video was seen over 23 million times and turned the company into a household name. This year, Dollar Shave Club was acquired by Unilever for $1 billion.

Instead of focusing on your big billion-dollar idea, focus on doing some really smart work with the tools that are out there. The number of social media and marketing platforms is exploding, and this means that there has never been a better time to succeed as a creative marketer.

Eimantas Balciunas is the co-founder and CEO of Travel Ticker.

]]>http://fortune.com/2016/12/06/billion-dollar-idea-marketing/feed/0bill-gateslaurencovelloHow to Build a Marketing Campaign that Appeals to Generation Zhttp://fortune.com/2016/12/05/marketing-campaign-generation-z/
http://fortune.com/2016/12/05/marketing-campaign-generation-z/#respondMon, 05 Dec 2016 13:00:05 +0000http://fortune.com/?p=1871914]]>Technology enables brands to connect with audiences on a personal level cost effectively, at incredible scale. Facebook, Twitter, and Snapchat all provide customizable platforms for businesses to reach their customers.

However, just because you build a social media account doesn't mean anyone is going to pay attention. This is particularly true for Generation Z-ers, or those of us born after 1996. We represent a huge portion of the consumer spending power, but it often feels as if brands aren't even trying to understand us.

Which is a shame, because it isn't hard! The root of the problem stems from one key (and easily fixable) issue: companies aren't talking to their users.

That's right. Brands are neglecting perhaps the most important factor in building their social media marketing strategies: collecting raw, honest feedback from real customers. This is particularly important for Generation Z, a group that hasn't entered the workforce yet, and one that many brands regard as strangers.

The best way for brands to learn more about this segment is to do one thing: ask them what they do and don't like. Creating this feedback loop through consistent, honest conversations is one of the best, if not the only way, to build relationships with Gen Z and learn more about them.

Modern digital channels make it convenient and affordable for brands to start conversations with Gen Z. The best brands leverage strategies like running Instagram contests or putting out Twitter polls so that they can interact with, and hear from their customers, on a daily basis. An active social media presence is one of the easiest ways that a brand can build credibility with, and get feedback from, an audience.

There's no replacement for real, personalized feedback. That said, here are two general traits that Generation Z wants to see in your social media campaign.

1. Authenticity

"The first, and most prominent mistake I see brands make via their social media strategies is that they create an ingenious character to represent their image," says Gregg Witt, executive vice president of Youth Marketing at Motivate Youth. "Gen Z wants real. Gen Z wants transparency. And Gen Z wants originality."

Every day, it seems another company launches a Snapchat account in an attempt to reach a younger audience. You can feel theweight of this collective effort. Some have even started posting "behind the scenes" Snapchat stories to promote their products, a format that's been used so many times, it feels unoriginal and uninspiring. Similarly, every time I see a brand promote another DJ-Khaled style Q&A on Snapchat, I lose a little respect. That's just lazy.

The best brands on Snapchat are the ones that talk to their audience in a fresh, authentic way. Taco Bell is a great example of this. The company has elevated its brand above competitors on social media by with its creative approach to Snapchat marketing. One of Taco Bell's most viral stunts was launching the Taco Snapchat filter, which was viewed a record 220 million-plus times during Cinco De Mayo. The customized lens hit all the right levers: it gave users a fun, humorous feature that also raised awareness of the company's products. Taco Bell continues to strike the perfect balance between entertainment and value, which means it continues to win new fans.

2. Functionality

"As a brand, you should be building social strategies that your customer will want to digest. You should not try and force them to view or read anything," says Logan Young, director of operations at BlitzMetrics, a New York company that creates, small-scale targeted social media campaigns for its clients.

I couldn't agree more. If there is one thing Gen Z values most, it's time. The best brands leverage new technology to provide customers with an added layer of functionality and convenience.

For example, luxury brands such as Louis Vuitton and Everlane are using Facebook Messenger to provide shoppers with seamless customer support. Through messenger chat, these brands answer questions, provide shipping updates, and help shoppers find new products, all in real time.

This is a huge advancement over antiquated forms of customer service. Particularly for Generation Z, a group used to instant feedback, having to wait for a response is a good way to kill customer engagement and satisfaction.

A great way to provide value is to focus on one of two things: functionality or entertainment. If you can hit on one, or ideally both metrics, Generation Z will pay attention.

- Connor Blakley is a youth marketing strategist.

]]>http://fortune.com/2016/12/05/marketing-campaign-generation-z/feed/0Teenagers on smart phonespolinamarinova1Meet the Former Banker Who Is Helping Millennial Men Step Up Their Shoe Gamehttp://fortune.com/2016/12/02/paul-evans-luxury-shoes/
http://fortune.com/2016/12/02/paul-evans-luxury-shoes/#respondFri, 02 Dec 2016 20:07:25 +0000http://fortune.com/?p=1873326]]>When Evan Fript finished up his Master's degree in finance, he made the natural transition into investment banking. But after a few years on Wall Street his priorities began to shift. In spending money refining his wardrobe, he found himself drawn to a totally new field: Fashion.

"I was looking for an escape from investment banking," Fript said in an interview for Fortune's new series, Founder Friday. "Working in an office is soul-crushing. I saw the next two decades [and] what would happen if I stayed in an office doing that sort of work. I wanted to find something I was passionate about."

Sensing a gap in the fashion market, he and fellow Wall Streeter Ben Early decided to start a reasonably priced high-quality footwear brand for millennial men. They called it Paul Evans and launched in 2013.

Given that they had zero retail experience prior to founding the fashion company, Fript says it took them about a year to do market research and find an Italian factory to produce the shoes. Inspired by brands such as Bonobos and Warby Parker, they decided to keep their product out of big-box retailers and go the direct-to-consumer route instead.

"We never wanted to sell a $1,000 pair of shoes," he said. "I wanted to sell $300 to $400 pairs of shoes. And the only way to do that at this quality level is to go direct to consumers."

The company brought in roughly $2 million in revenue last year and is reportedly on track to surpass $2.5 million by the end of 2016. To do that, it plans to stay hyperfocused on its target customer: the 26 to 39-year-old urban male who can afford to spend a few hundred dollars on shoes that look and feel well-made.

"Some guys are still wearing these really ugly square-toed shoes [that are] low-quality," he says. "Shoes are definitely an investment."

For more on Fript's entrepreneurial journey, watch the video above.

]]>http://fortune.com/2016/12/02/paul-evans-luxury-shoes/feed/0screen-shot-2016-12-02-at-2-31-25-pmpolinamarinova1How This Quirky Clothing Brand Is Using Snapchat to Sell More Shortshttp://fortune.com/2016/11/26/chubbies-snapchat/
http://fortune.com/2016/11/26/chubbies-snapchat/#respondSun, 27 Nov 2016 01:30:53 +0000http://fortune.com/?p=1866311]]>The world is in danger: The evil Pants Co. wants to hypnotize everyone watching TV into working on the weekends. The Shorts Guys can save the weekend, but they’ll have to travel back in time to stop Pants Co.’s CEO’s dangerous plan.

If it sounds like the plot of a whacky homemade skit, that’s because it is. Chubbies, a five-year-old apparel company that made its name by selling brightly colored men’s shorts, has turned this story into a weekly mini-video series on its Snapchat account. And according to the company, it’s worked well--many of its followers on Snapchat are watching it and even tweeting about it.

Chubbies is of course just one of the many companies experimenting with marketing on Snapchat beyond purchasing ads. Instead, they’re trying to create interesting and entertaining videos and photos that entices consumers to add them as a “friend” on the app and most importantly, think of them as hip brands.

Chubbies decided to start posting content on Snapchat because it’s increasingly where its customers are spending their time, co-founder Tom Montgomery told Fortune. Currently, Snapchat has more than 150 million daily active users globally, and says it reaches 41% of all U.S. 18 to 34 year-olds.

Founded in 2011 by four college friends from Stanford University, Chubbies has long used social media as part of its marketing efforts, largely because its customers are young. The company’s marketing campaigns are usually humorous, emphasize Chubbies’ bright clothing, and emphasize that Chubbies is a brand that doesn’t take itself too seriously. For example, Chubbies produced a video showcasing a men’s synchronized swimming team for the Olympic Games this summer, which garnered over 24 million views on Facebook.

So it’s no surprise the company has turned to Snapchat as a way to entertain its target market. It has experimented with ways to market its products on Snapchat such as exclusive discount codes and products that are only available through its app.

Snapchat declined to share how many companies have created accounts on its app, though an increasing number of brands are joining the craze, from news outlets, to fashion companies, and even candy companies.

Snapchat began in 2011 as a mobile app for sharing photos and short videos that disappear after the recipient has viewed them, an answer to growing teenage concerns about permanent online social networks like Facebook potentially haunting them later in life. Since then, it has added a hub where users can find short news articles and videos from publishers like People, Vice, and CNN. It’s also added features like Stories, which are collections of photos an videos that disappear after 24 hours, among others. Earlier this month, parent company Snap, which recently released its long-rumored video-recording sunglasses, reportedly filed to go public next year.

But Snapchat’s unpolished and candid format also puts Chubbies, which has raised $14 million in funding, on an even playing field with competitors with bigger marketing budgets. While social media services like Facebook, Twitter, and Instagram let brands publish highly produced professional video and photos, there’s no way to do that on Snapchat aside from paying for ads.

So this is where Chubbies’ creativity comes in. As it shot the third installment of True Thighs a couple of weeks ago an iPhone, its four-man team came up with clever hacks to use Snapchat’s limitations. For example, the characters spoke faster so they could cram their lines into the 10-second limit for each video. The company’s low budget prop closet provided wigs, fake mustaches, a volleyball, and a mannequin’s legs. The team built a "time machine" using cardboard, and shot scenes throughout the office, in a nearby alley, and even on the roof.

As for the magical bag of cash the Shorts Guys chased around during the episode? It was added in "post-production" by pasting a large cash bag emoji before the videos were published on Snapchat. If you’re not familiar with Snapchat, users can decorate their photos and videos with emoji and other illustrations before they post them.

And because there are over a dozen 10-second videos per episode, the Chubbies team has even found a trick to upload all the videos at once: Keep the smartphone used to film the Snapchat videos on "Airplane mode" while shooting videos, then disable the feature when done.

For more on Snapchat, watch this Fortune video:

With that said, Snapchat still frustrates some companies that use it for marketing. For one, while they can see how many times each photo or video has been seen by followers, Snapchat doesn’t tell them how many followers they have overall, unlike other social media services. According to Montgomery, Snapchat used to provide him with an update when asked, but that’s no longer the case. Before starting the True Thighs series, Chubbies had about 12,000 followers, according to Montgomery. That number has since grown, though the company doesn’t have an official count.

It’s also more difficult to measure the effect of the content it publishes on Snapchat than on other social media channels. On Facebook, Chubbies has devised a strategy to test the three to five videos it creates weekly with a small pool of fans and decide if it wants to distribute it more widely on Facebook. On Snapchat, its only indicator of success is the total view count and any praise its followers post on Twitter about its videos. The company says that about 80% to 90% of followers that tap to watch its new posts stay on to view more than the first photo or video.

And that’s exactly how Snapchat intends things to be.

Unlike other social media companies, Snapchat doesn’t really believe that users should be "friends" with brands, a spokesman told Fortune, so it’s not making it any easier for brands to build a following. Rather, companies are supposed to buy ads. Currently, Snapchat offers a few different formats: Ads that can be inserted in Stories (collections of photos and videos from users), sponsored "lenses" (animated overlays for photos and vidoes), and sponsored geofilters (overlays for photos and videos only available in certain locations).

The only exception are celebrities, whose accounts are marked as “official” when users add them to their lists of friends on the app.

So if companies want to interact with users in the "organic" part of the app, they’re left to their own devices. If they succeed at creating compelling content and amass a large following, good for them, says Snapchat.

]]>http://fortune.com/2016/11/26/chubbies-snapchat/feed/0Chubbies shortskiakokalitcheva4 Tips for Mastering the Art of Persuasionhttp://fortune.com/2016/11/23/4-tips-for-mastering-the-art-of-persuasion/
http://fortune.com/2016/11/23/4-tips-for-mastering-the-art-of-persuasion/#respondThu, 24 Nov 2016 01:00:34 +0000http://fortune.com/?p=1856613]]>This article is part of Tools of the Trade, a weekly series in which a variety of experts share actionable tips for achieving fast and effective results on everything from productivity to fundraising.

This week Derek Rucker and Zakary Tormala explain how to get people to believe in your message. Rucker is a marketing professor at The Kellogg School of Management, and Tormala is a marketing professor at Stanford Graduate School of Business.

Business is often about shaping other people's beliefs. Convincing an investor your idea is worthy, a corporate partner to give a fair price, or a customer to adopt your service requires insight into the art and science of persuasion. That's well known. What's often overlooked, however, is that persuasion requires more than the ability to mold an opinion.To get someone to act on the beliefs you've inspired, you need to also create a sense of conviction, or belief certainty.

Belief certainty refers to how confident we are in our opinion about something. Acrossdozens of studies, we've found that people can hold the same belief, such as a positive attitude toward a new product, but differ in how confident they feel about said viewpoint. For example, two consumers might both like a new restaurant, but one is convinced that the food is truly excellent, whereas the other is less sure. This difference matters--a lot! People who are certain about a belief are more likely to act in accordance it, whether that's voting for a position they support, or purchasing a product they like. Put simply, it's one thing to persuade, but another thing altogether to make an idea take root and create a lasting opinion that drives behavior.

What are some simple ways to build certainty in an audience? Here are four key findings from our research:

1. Note the negative. We often think persuasion is about focusing on the positives, while downplaying the negatives at all costs. But research shows that instead of ignoring the negatives entirely, it's often more effective to address one or two (while still emphasizing the positives, of course). Addressing an idea's weaker points shows you've done your homework, which gives your words more authority. So the next time you make a business pitch, try addressing its limitations and then explain how they can be overcome.

2. Reinforce with repetition. Research indicates the more frequently we repeat a belief, the more confident we becomes in that position. In addition to adding a perceived sense of clarity, each repetition provides another opportunity to incite action. So the next time a manager, coworker, or consumer says something favorable about your idea, encourage them to elaborate. A question as simple as 'Why do you think that?' helps encourage the belief that your idea is truly great.

3. Make it easy. The easier it is for us to articulate why we feel the way we do, the more likely we are to be convinced that our belief is correct. As a result, you can build certainty by making it easy for an audience to come up with their own reasons to support your position. For example, in a sales pitch, instead of asking people to come up with a long list of potential uses for your product, try lowering the bar. Coming up with one application is easier than coming up with a handful of them, which can bolster an audience's conviction that they'll actually use the product.

4. Encourage consensus. When someone says they like your product, it's easy to assume you've successfully persuaded them, and so your job is done. But we know people are social animals. Use this as a tool. When people find out that others share their view, it sends a signal that the view is "correct." The implication? When people like your product, reinforce that opinion by assuring them others have reached the same conclusion, perhaps by linking to the number of consumers who have "liked" your Facebook page or directing them towards positive comments on Twitter. In today's age of social media, tools for building consensus are more prevalent than ever before.

Belief certainty is a crucial lever in the persuasion process. To become a more effective persuader, challenge yourself to move beyond the simple act of shaping opinions and strive to inspire conviction. Doing so can reveal opportunities to make your audience more certain and, thus, to promote action and advocacy.

]]>http://fortune.com/2016/11/23/4-tips-for-mastering-the-art-of-persuasion/feed/0146426375lauraentis89Another Carrier Is Offering a Free iPhone 7 On Black Fridayhttp://fortune.com/2016/11/23/verizon-free-iphone-7-black-friday/
http://fortune.com/2016/11/23/verizon-free-iphone-7-black-friday/#respondWed, 23 Nov 2016 20:36:46 +0000http://fortune.com/?p=1866349]]>Verizon matched one of T-Mobile’s most popular Black Friday offers, saying customers can get a free iPhone 7 by trading in of a recent smartphone.

As with T-Mobile, the free with trade-in offer also applies to other new flagship smartphones. Verizon included the Google Pixel and the Samsung Galaxy S7, among others. Customers must sign up for a 24-month installment plan, with Verizon covering the payment for the phone each month. A customer who stays with Verizon for less than the full two years wouldn’t get full credit for a phone.

Customers switching to Verizon from a competitor and who purchase a phone will get a $200 Visa prepaid card for each line they transfer, up to four lines, as well. And Verizon is offering discounts on an array of other accessories. The Black Friday offers will run through the weekend, Verizon said.

Wireless carriers are upping the ante on deals and promotions as the holiday shopping season gets going. The aim is to attract more customers in a market that is no longer expanding like it did a few years ago. Only T-Mobile tmus and Sprint added regular monthly phone customers recently, while Verizon and AT&T saw net losses in that most lucrative subscriber category.

Sprint s has said it will offer Black Friday customers who buy a Galaxy S7 phone a second S7 phone for free or a free Samsung Tab E tablet. The HTC Bolt phone will be half off, and customers who buy an LG V20 will get a free 43-inch LG 4K UHD Smart LED TV.

Both Sprint and T-Mobile have also offered discounts on service in addition to hardware promotions.

AT&T's deals, which started on Tuesday, include a free iPhone 7, Galaxy S7, LG G5 or LG V20 only for customers of the company's DirecTV or U-Verse services who switch a line in from a competitor. The carrier is also offering an assortment of discounts and deals on other hardware, such as a $200 Visa gift card with purchase of a Samsung Galaxy S6 phone or an LG G Pad X 10.1 tablet for 99 cents with purchase of a flagship LG phone and a two-year contract.

To learn about Verizon’s Yahoo purchase, watch:

When the iPhone 7 was first released, all four carriers offered a free with trade-in offers. T-Mobile and Sprint said the offers greatly increased demand compared to sales of last year's iPhone 6s. AT&T t and Verizon vz said their deals only modestly affected demand.

Analysts think the promotions may have helped sell more iPhones than expected, but Apple won't reveal actual iPhone sales until January, when it reports results for the final quarter of the year. Even then, the company never discloses how many iPhones were sold in the U.S.

]]>http://fortune.com/2016/11/23/verizon-free-iphone-7-black-friday/feed/0verizonampressmanHow to Conduct Market Research on the Cheaphttp://fortune.com/2016/11/22/market-research-on-the-cheap/
http://fortune.com/2016/11/22/market-research-on-the-cheap/#respondTue, 22 Nov 2016 13:00:41 +0000http://fortune.com/?p=1864181]]>This article is part ofTools of the Trade, a weekly series in which a variety of experts share actionable tips for achieving fast and effective results on everything from forming good habits to raising money.

This week Jon Sebastiani, the founder of Krave and Sonoma Brands, shares strategies for conducting effective market research on a budget.

Building a food brand in today's crowded marketplace is no easy feat, particularly for up-and-comers who must capture the public's attention on a startup budget.

Luckily, there's an easy, relatively affordable way for brands to test a range of factors, including taste and price: Field marketing. The practice, in which product samples are distributed at a retail location or at an event, is also a great tool in introducing products to new audiences.

Here are a few more reasons why it's so valuable.

1.It allows you to define your brand.

Growing up, my family owned a winery in Sonoma, Calif., and I experienced tasting rooms where people could smell, taste and touch the wine, as well as learn about its history and how it paired with food. If they liked what they tried, they could buy a few bottles to bring home.

This act of discovery was important. When I foundedKrave Jerkydecades later, I relied on a similar process. Essentially, we had to re-introduce consumers to jerky, which was seen as a gas station junk food. And so we applied the principles and elegance of a wine country tasting room to every supermarket demo and event we participated in. Not only did we offer samples, but when consumers tried our products, we were on hand to explain how we used all-natural ingredients and artisanal flavors for jerky elevated. It was a chance to differentiate ourselves and our product.

2. It shows you what your customers want.

When you are a startup, you are constantly looking for repeatable, scalable data. While big industry players can spend millions on market research, most startups don't have that luxury.

This is where retail demos come in. By conducting in-store demonstrations, food and beverage entrepreneurs can test a range of factors, including price point, flavor profiles, messaging, most importantly, what's not working. When launching Krave, we conducted retail demonstrations and observed customers' reactions to our product. After listening to our consumer's feedback that they sought a simplified flavor profile, Krave launched the Sea Salt flavor as a direct result of this customer insight.

3. It exposes your product to a new audience.

Beyond just collecting data, these one-on-one interactions are a good way to gain new customers. Particularly for brands in new or developing categories, this exposure is important. Z?pa Noma, for example, our recently-launched line of chilled, ready-to-sip soup. Because gazpacho and chilled soups are an emerging category in the American marketplace, we have relied on field marketing for customer trial. To date, through field marketing efforts, we have distributed roughly 9,000 samples, which has resulted in the sale of over 4,000 bottles.

In addition to retail demonstrations, startups should also consider taking their field teams to larger events. At an in-store demo, you may be able to expose your brand to 80 people in three hours. However, at a festival or conference, you might interact with 3,000 potential customers in that same time frame. And if a small percentage of those attendees share their discovery via social media, you've amplified that exposure in an organic way that's often more powerful than traditional advertising.

When choosing an event, think about your target customer. What type of events are they likely to attend? For example, this yearDang Foods, the original coconut chip maker and a brand in our investment portfolio, had a booth at Wanderlust, a global yoga festival. By offering samples at the event, the company was able to connect with its customer base in a fun way, and create new customers.

]]>http://fortune.com/2016/11/22/market-research-on-the-cheap/feed/0Friends tasting wine togetherlauraentis89Where Mobile Customers Are Seeing Bigger Discounts Right Nowhttp://fortune.com/2016/11/16/mobile-discounts/
http://fortune.com/2016/11/16/mobile-discounts/#respondWed, 16 Nov 2016 17:03:28 +0000http://fortune.com/?p=1860487]]>The mobile industry may be entering a new and even more competitive phase as the carriers begin to battle over holiday promotional offers.

The trend towards better offers for consumers started with this year’s new iPhone 7. T-Mobile offered a much better deal than it had the year before, giving customers a free iPhone 7 with a trade-in of a one- or two-year-old iPhone. The other three major carriers quickly copied the free with trade-in offer, and most of them saw a significant jump in iPhone 7 sales compared to last year’s iPhone 6S.

Now with the holiday shopping season approaching, consumers can look forward to another round of deeper discounts.

And again, T-Mobile tmus got the ball rolling with several promotional offers on Wednesday. Under one deal, new or existing customers can get four lines on T-Mobile’s new unlimited data plan for the price of two lines. Customers on older Simple Choice plans can also get the four for the price of two deal. And the discount doesn’t expire.

“When you switch to @TMobile, you keep that promotional pricing... FOR LIFE!! AKA - it's time to switch!,” CEO John Legere tweeted.

T-Mobile’s unlimited plan, which automatically reduces the quality of streaming video, was introduced in August at a price of $120 for two lines, $140 for three, and $160 for four. Under the new promotion, four lines cost $120 a month. The carrier also announced deals on a range of devices, such as the Samsung Galaxy S7 phone and the UE Boom 2 wireless speaker.

The discounts come as growth is slowing more than ever in the mobile market, where there are already more active phones than the total population of the country. Over the past year, the industry has increased the number of regular monthly phone customers by less than 2%, analyst Craig Moffett has noted. Revenue from monthly service fees has been shrinking for the past two years, though less profitable revenue from selling phones directly to consumers has offset that decline, according to Moffett.

So far, the other carriers have yet to react to T-Mobile’s cheaper service promotion. Sprint s has unveiled some device discounts, such as an offer to get a free Galaxy S7 with purchase of one at full price. But they are likely to counter T-Mobile, particularly Sprint, if the offer catches on, analysts said. AT&Tt and Verizonverizon have tried to stay out of the discounting wars as much as possible.

“I don’t know that we’ll see all the carriers do this, but Sprint might well jump on board,” Jan Dawson, chief analyst at Jackdaw Research, says. The deep discounts on monthly plans could come back to haunt the industry, however.

“They will never make money from these free lines,” Dawson says. “Hardware discounts can be a way to secure new paying subscribers. The bet is presumably that those lines can be upsold over time, but there’s no guarantee.”

]]>http://fortune.com/2016/11/16/mobile-discounts/feed/0Inside A T-Mobile US Inc. Store Ahead Of Earnings Figuresampressman‘Brain Game’-Maker Lumosity Forges Ahead After Reaching a $2 Million Settlement for Deceiving Consumershttp://fortune.com/2016/11/16/brain-game-lumosity/
http://fortune.com/2016/11/16/brain-game-lumosity/#respondWed, 16 Nov 2016 16:01:18 +0000http://fortune.com/?p=1860236]]>For Lumos Labs, which makes the brain training app Lumosity, the year started on a sour note. Midway through the first week in January, the Federal Trade Commission announced it was suing the company for $2 million. Through its pervasive digital ads, TV spots, and radio voice-overs, Lumosity, the agency said, had peddled "unfounded claims" that users could reduce or delay serious cognitive conditions, including Alzheimer's, dementia, and ADHD just by playing its games.

Again, not the most auspicious start to 2016. Fast forward eleven months to present, however, and Lumosity isn't just still around — it's releasing new features. "The FTC never had issues with the quality of the product," says Steve Berkowitz, the company's recently-installed CEO (he joined in November 2015). "It was with the advertising language."

And so Lumosity continues making, and marketing, its products. In addition to playing the bank of 50-plus "brain games," users are now able to track how their performance changes over time, pinpoint their strengths and weaknesses, plus see how their scores compare to other users'. The idea originated with curious consumers, says Berkowitz. As such, it neatly aligns with his central mission: "Focus on the emotional connection people still have with our product."

Berkowitz contends the FTC lawsuit's effect was more of a ripple than a wave — "we saw very minimal refund requests for our product," he says — and that many users rallied around the company, expressing their support via calls and emails.

And yet it's hard to believe the settlement didn't have a significant financial impact. According to the FTC, Lumos Labs has sent more than 13,000 refund checks to subscribers, which adds up to over $1.9 million. (To qualify, consumers had to have spent at least $239 in subscription fees, which means the majority of paying players aren't eligible.) What's more, it forced the company to completely rebuilt its marketing efforts. Those ubiquitous ads inquiring whether you wanted to improve your brain's performance "with the science of neuroplasticity"? Gone. In their place — far fewer ads that must walk a fine line, at once highlighting that the games' are based in research, while refraining from explicitly stating that they offer any tangible cognitive benefits. Overall, it makes for a far less seductive sales pitch.

Berkowitz won't disclose if the company is profitable. He does say things are going well, pointing to its 85 million users as proof (although that includes subscribers, plus anyone who has downloaded the app, since the company was founded in 2007). And while Lumosity's website says it employs 160 people, Berkowitz says that number currently falls within the 120 to 130 range.

More broadly, a number of researchers have disputed the idea that playing brain games translates into any real-world value. In 2014, 70 prominent scientists published an open letter pushing back against the marketing claims made by companies like Lumosity. Shortly after, however, a group of 100 scientists wrote a response arguing that brain training's effectiveness was actually backed by some pretty solid evidence. Since then, additional high-profile studies have come out — including an article, published in the journal of Psychological Science in the Public Interest, which found no evidence that brain games improve everyday cognition — but the topic is still very much up for debate.

"There is disagreement in the research world — but that's what research is about," Berkowitz says. "There are always open questions." The company provides outside academics with access to its tools and data points, which have been incorporated into independent peer-reviewed studies.

While the methodology of some of its own, internal studies has been called into question — it's unclear whether playing a Lumosity game translates into cognitive benefits in real life — Berkowitz is convinced people will continue playing.

"In this age where information demands more of our minds and mental fitness," he says, Lumosity's products are "going to be more important than ever."

]]>http://fortune.com/2016/11/16/brain-game-lumosity/feed/0460689429lauraentis895 Lessons I Hope Marketers Don’t Learn from Donald Trumphttp://fortune.com/2016/11/14/donald-trump-marketing-lessons/
http://fortune.com/2016/11/14/donald-trump-marketing-lessons/#respondTue, 15 Nov 2016 01:00:26 +0000http://fortune.com/?p=1858233]]>If marketing is a profession, and I hope it is, then I suggest there are five rules that marketers should not follow in the interests of self-respect and respect for the profession.

It pays to pander.

No it doesn't. It's unethical, but also unwise, to exploit the uglier impulses and less-than-noble dreams of consumers, because a brand that's built on such appeals will find it hard to grow to be a source of pride. Apparently misogyny, xenophobia, and contempt for the disabled have worked as customer acquisition tools for soon-to-be President Trump. But will they be retention tools? Consumers who've succumbed to the lure of guilty pleasures, to the point of being coy about acknowledging them to pollsters, will face bigger coming-out problems down the road.

Sell dreams even if you have no plan to deliver.

If you've been promising jobs in demolished steel mills or shuttered coal mines, better health insurance with lower taxes, remember the essence of a brand is promise, large promise. Pin your brand to a dream, yes, but have a plan or today's happy buyers will become tomorrow's angry owners.

Win at any price.

Your offering lives in an ecosystem. Don't poison it. The more vivid the negative advertising, the longer it lingers. Brands depend on the health of the whole system through which value is created and sustained. If you compare your brand to “Crooked Hillary,” “Lyin' Ted,” “Low Energy Jeb,” and “Little Marco,” the price of winning may be contempt for the whole category.

For more on Donald Trump, watch this video:

Scorn the non-buyer.

Trump alienated the marginal customer. He forgets that today's brand rejecter may be tomorrow's opportunity, but not if the marketing campaign has cruelly cut the market into segments of mutual hatred.

Lie.

Every professional traffics at least a little in hopefulness if they want to be hired. In marketing, hope takes the form of indulging puffery and exaggeration. The problem is that the temptation to shade from puffery to lying is always present. And the suspicion lurks that big lies are safer than small lies. Adolf Hitler articulated this hunch when he said, "In the big lie there is always a certain force of credibility: (people) more readily fall victims to the big lie than the small lie, since they themselves often tell small lies in little matters but would be ashamed to resort to large-scale falsehoods." How Trump the marketer ranks on size of the lie is a matter of opinion, but someone who hoped to learn ethical practice from his marketing manual would be well advised not to follow him in the matter of frequency. The Washington Post scored 64 percent of the statements of his as 4 on its 4 point severity scale, and most of the rest at 3. Its summary was, "There's never been a presidential candidate like Donald Trump--someone so cavalier about the facts and so unwilling to ever admit error, even in the face of overwhelming evidence."

This then is the danger of treating last week's election as a lesson in marketing. Pandering, blustering, insulting, alienating, and smothering facts with falsehoods does seem to work. In the short term. But at the risk of poisoning the market.

John Deighton is Baker Foundation Professor of Business Administration at Harvard Business School.

This article originally appeared on Harvard Business School Working Knowledge.

Ben & Jerry’s Europe couldn’t have timed it better. The ice-cream brand this week issued a simple and powerful message that will soften even the hardest of hearts.

To the tune of One Sweet World by singer-songwriter Ben Cocks, the two-minute animation begins in a sad and lonely dystopia where lemons are angry, cherries are fearful, and all of the fruity ingredients have reached “melting point.” It ends with a message of fruity unity, where all flavors get “sweeter together.”

Made by British agency Nice and Serious, the ad is as sweet as ice cream, and delivers an appropriately sober but heartwarming missive for a world that feels “increasingly divided,” said Ben & Jerry’s in a statement posted under the video.

For more on Ben & Jerry’s, watch this Fortune video

“We’ve been thinking about how we can amplify a message of unity & love using the thing we know best… ice cream! Say hello to East Coneville!” The clip hinges on on a shot of our protagonist, a lone cherry, standing under the town park gate--called, appropriately, Rosa Park--where one small moment of kindness turns their world around.

Give consumers a job.

The best marketing campaigns always call on consumers to do something. For example, United invites you to “Fly The Friendly Skies.” Nikenke insists that you “Just Do It.” The most successful brands also allow their consumers to co-create brand meaning. "Let’s Make America Great Again" is an inclusive call to arms with a powerful goal that each voter can interpret for himself. It embraces passion and purpose. Clinton’s "Stronger Together" is also inclusive but it evokes process, not that process isn’t important, but the desired outcome is much less clear. Good marketers know that, if you don’t position your brand clearly, your competitors will do it for you.

Show the past as prologue.

Offering consumers the adventure of voting for an uncertain future never works with the majority, especially if your brand is new to the game. Trump, the political neophyte, won by recalling a better yesterday and promising to recreate it as the better tomorrow. The word “Again” is no accidental addition to the Make America Great slogan. Remember the famous Kellogg’s Corn Flakes campaign to recover lost consumers: "Try Us Again for the First Time.' For millions of Americans in the rust belt, the good old days really existed and they voted to bring them back.

Pursue forgotten consumers.

Most financial firms chase the same high net worth prospects, ignoring or at best taking for granted millions of modestly prosperous people. Trump turned the Democrats’ commendable embrace of diversity on its head to invoke the “Forgotten Man,” winning over lunch-bucket Democrats overlooked by their party as well as bringing in new voters and energizing lapsed ones. At the same time, almost all Republicans came home to vote for their nominee. Good marketers always know how to balance new customer acquisition with customer retention.

For more on Donald Trump, watch this Fortune video:

Sizzle beats steak.

Clinton was always going to beat Trump on the steak of experience and policy knowledge. A new brand can’t afford to get lost in the policy weeds. Hence, Trump’s campaign persona and his contract with the American voter offered more sizzle. Painted in broad brush strokes, the contract emphasizes goals and outcomes, and is light on policy and implementation details. Of course, having begun many a sentence with the words “A Trump administration will…” he now has to deliver the steak. Will Brand Trump deliver on its promises? If not, the consumer won’t repurchase four years from now.

Build enthusiasm.

Good marketers know the power of word-of-mouth recommendations. In the era of social media, better organization (the old ground war) and outspending on television advertising (the air war) weren’t enough for Clinton. Trump’s determination and stamina--five speeches a day--and the size of his crowds impressed ordinary voters watching on television much more than Clinton’s barrage of paid ads. The pundits questioned whether enthusiasm would convert into votes. Good marketers know that brand enthusiasm rings the cash register. It did for Trump, but not for Clinton.

Close the sale.

Political marketing requires you win a plurality of votes not every day but on a single day once in four years. Timing is everything. Trump learned what worked and what didn’t work as the campaign progressed. He refined his message, suppressed the ad hominem insults, and peaked at the right time, confounding the pollsters and media pundits. In every recent speech, he repeated the same messages, inviting voters to imagine the future if they bought into the promises of a Trump administration. He confidently asserted “we are going to win” this state, “we’re leading in” that state. Consumers not only want to back a winner, they want to back a brand that sees itself as a winner. And they want to back a brand that other people similar to themselves see as a winner. That’s when a brand becomes a movement.

In the last week, brand Clinton promised a bright future but looked like the candidate of yesterday, a little tired and overly reliant on a supporting cast of Obamas and Bon Jovis. By contrast, Brand Trump promised a future that looks like yesterday, Everyman’s high-energy underdog and outsider, disruptive yet decisive, standing alone at the podium, mane flowing, ready to step up to Pride Rock.

Brand Trump is today’s bright new thing. But new is easy. Good is hard. Time will tell whether Brand Trump can deliver on its promises.

That's the core finding of a new Nielsen study called Young, Connected and Black, which describes the black millennial cohort in America as sophisticated, optimistic, exuberant and reflective. They're influential. They're bold. And they are shaping important conversations about policy, culture, and entertainment as they bring their offline passions into online interactions. Citing a combination of population growth, better education, and rising incomes, Nielsen finds that the 11.5 million African American millennials are about to bring new purchasing power to a digital world.

Honestly, the report describes the most awesome group of people you could possibly imagine.

Some key findings:

70% of black millennials are fascinated by new technology, and they're more likely to be the first among friends or colleagues to try new tech products.

91% of African-Americans own smartphones, just three points behind the largest group, Asian-Americans at 94%, and edging out Hispanics at 90%.

55% of black millennials say they spend an hour or more daily on social networking sites, 11% higher than the total millennial population. Some 29% of black millennials say they spend three or more hours daily on social networking sites, 44% higher than that of the total millennial population.

They spend more time watching live or on-demand television than others; they watch video on a wider variety of devices.

Their sophisticated use of social media isn't just for shopping or driving brand awareness, their online behaviors are driving a deeper understanding of the issues that impact society at large.

The report is a treasure trove of data and a rallying cry for marketers to get targeting. "For marketers trying to establish meaningful connections with African-Americans, leveraging their passions and usage of today's latest technology should be a central focus in strategic goals." That all makes sense. And it's thrilling to see this slice of the next generation doing well enough to embrace digital possibility with such vibrancy and creativity.

But it’s the “meaningful connections” part that sticks in my throat. Partly because it's hard to miss the powerful disconnect that this analysis reveals. This is the very same group of awesome people who are routinely abused on Twitter, are labeled as thugs when they lobby for political change, who worry about being targeted by police, who wait longer for advancement at work and are underpaid throughout their careers. They have value as consumers, but not much else.

But if you take the analysis at face value only, then it describes a missed opportunity. Black millennials – who are often admired but rarely paid for their online innovations – are driving real corporate change, like more diverse entertainment options. Why not target the issues they’re advocating for, instead? Maybe the voices that are being amplified should be tapped for their insight and leadership potential, and not just for their pocketbooks.

]]>http://fortune.com/2016/11/03/black-millennials-digital-corporate/feed/0black millennialsellenmcgirtWhere to Get the Best Deals on the Google Pixel Phonehttp://fortune.com/2016/10/28/best-deals-google-pixel-phone/
http://fortune.com/2016/10/28/best-deals-google-pixel-phone/#respondFri, 28 Oct 2016 20:26:05 +0000http://fortune.com/?p=1842984]]>Just as they did with Apple’s iPhone 7, wireless carriers have begun battling for the allegiance of fans of the new Google Pixel phone.

Introduced almost a month ago in two sizes by Google, the Pixel is the only phone that has the company’s new voice-controlled digital assistant. Much like the new iPhone, the Pixel also features a fingerprint reader, a 12 megapixel camera and a starting price of $650.

Initially, the Pixel can only be bought in stores or online at Verizon or Best Buy, as well as online from Google. But none of the Pixel phones are locked to a specific carrier. No matter where a consumer shops, the phone can still be used on Verizon, AT&T, Sprint, or T-Mobile.

And that has ignited the latest round of marketing promotions--not quite as generous as Apple aapl iPhone 7 promotions--but close.

T-Mobile, seeking a way to blunt to draw of Verizon’s exclusive, started its offer this week. Customers who have already bought a Pixel phone and sign for the carrier’s new unlimited plan, which starts at $70 a month, will get a $325 bill credit, paid out in monthly installments for two years.

The T-Mobile tmus deal was accompanied by a storm of tweets from CEO John Legere. “Did you know you can avoid @verizon and use your Pixel the way it was meant to be used: on unlimited? Just bring it to @TMobile!,” he said in one tweet.

Verizon’s counter offer was slightly different. The largest carrier said new customers who switch to Verizon vz and buy a Pixel will get a $400 credit if they trade in a recent smartphone at the same time. Existing customers can get $300.

For a comparison of the iPhone 7 and Pixel, watch:

The offers came as Google googl received rave reviews for the Pixel as the best smartphone running the Android operating system. At the same time, Samsung ssnlf has had to recall its popular Galaxy Note 7 due to the phone’s unstable battery. And Apple customers are suffering from some delays on the iPhone 7 as certain models remain backordered.

For several weeks after the newest Apple phone went on sale, all four major carriers offered a free iPhone 7 with trade-in of a recent iPhone.

This was some of the marketing language used to sell the power of, well, marketing by three star brand builders at Fortune's Most Powerful Women Summit last week.

While the execs--who hail from Unilever, Chico’s, and Group SJR--had plenty of tips, the biggest takeaways emerged when they recounted the times they really goofed.

For Gail Tifford, Unilever's vice president of media and digital engagement for North America, that moment came when she was running the Q-tips brand. Antibacterial-everything was all the rage at the time, so Tifford decided to take the same approach with Q-tips.

The antibacterial properties worked to keep germs off the cotton swab of the Q-tip, which turned out to be something shoppers don't care about. "It was probably the dumbest thing," Tifford said. The episode, she explained, was a prime example of what can happen when you become obsessed with what's happening in the broader marketplace and with your competitors rather than with your customers. The product was later redesigned so that the Q-tips killed germs on contact with the cotton swab.

Shelley Broader, president and CEO of retailer Chico's, almost learned the hard way how important it is to understand the nuance of a name when working for retailer Delhaize Group on the rebranding of Florida’s Kash 'n' Karry supermarket chain.

The company was considering two names for the relaunch: Sweetbay Supermarkets and Founders Market. Both tested well, but when Broader's team really dug into the research they realized that “Founder” was the name of terrible ailment in horses--extremely problematic considering a third of the stores were going to be located in Florida's rural horse country. "We nearly named it after a horse disease," Broader said.

Christa Carone, chief operating officer of content marketer Group SJR, also had a near miss when she was at Xerox--albeit a costly one. Carone was trying to change the legacy perception of the company by positioning it as "high tech and relevant with the c-suite."

But after spending a lot of money trying to sell the brand to company's top executives, she realized the strategy wasn't working. Her team switched to targeting managers and director-level employees by stressing that Xerox could make work a lot simpler--just as its copiers had always done.

The group also told the Summit audience that branding can be just as important when attempting to sell an idea to your own employees. Tifford was working on Unilever's Mentadent (it sold to Church and Dwight in 2003) when her team had the idea to switch the toothpaste's dual-chamber dispenser to a tube.

"I said, ‘This is going to be project Fallopian,’" she recounted. "I lost them right there." She renamed it Project Squeeze, which was better received. "It's amazing I still have a job at Unilever," she joked.

]]>http://fortune.com/2016/10/26/marketing-branding-biggest-mistake/feed/0Fortune Most Powerful Woman Summit 2016bkowittHow Zendesk Is Looking Beyond Customer Service With These New Appshttp://fortune.com/2016/10/26/zendesk-analytics-apps/
http://fortune.com/2016/10/26/zendesk-analytics-apps/#respondWed, 26 Oct 2016 14:00:09 +0000http://fortune.com/?p=1839008]]>Zendesk, which made its name as a purveyor of customer service software, is recasting itself in a broader role with the release of two new analytics services.

The offerings, Zendesk Explore and Zendesk Connect, help link the business software company’s existing helpdesk and messaging applications to other systems such as customer sales databases or marketing automation resources. The goal is to provide deeper insights about the state of specific relationships--whether a customer is unhappy or happy, says Zendesk CEO Mikkel Svane.

“They take in data points that constitute the entire experience--how do you overlay customer service information with sales data, website analytics, to provide a consistent image and understanding,” he explains, noting that Zendesk already uses both services internally. “This has been an eyeopener for us.”

For example, a company might use Zendesk Explore to correlate interactions across different departments. A support desk agent, for example, would be able to tell if someone’s account is pending renewal with the sales team or whether that customer recently spent time researching a specific product on the company’s website.

The Connect service is more of a marketing application that uses data gathered from other systems to suggest certain types of outreach or communications.

For example, when someone buys a new product, Connect could be used to proactively send tutorial information about certain features according to a predetermined schedule. “It provides predictors of where a relationship might move,” Svane says, adding, “You can be much more preemptive.”

The services can be used separately or together. Explore is based on technology that Zendesk zen acquired last fall through its $45 million buyout of French data analytics firm We Are Cloud, its nod to the power of big data. The Connect service was developed internally, Svane notes.

Technically speaking, neither service is commercially available. However, Zendesk is encouraging its 81,000 customers to try the applications as part of an early access program.

]]>http://fortune.com/2016/10/26/zendesk-analytics-apps/feed/0BRA.07.01.16.Mikkel SvaneheathclancyWhat Brands Can Do To Prepare for Gen Zhttp://fortune.com/2016/10/25/what-brands-can-do-to-prepare-for-gen-z/
http://fortune.com/2016/10/25/what-brands-can-do-to-prepare-for-gen-z/#respondTue, 25 Oct 2016 14:43:27 +0000http://fortune.com/?p=1838689]]>Generation Z, the post-millennial generation that was born in the late '90s or early 2000s, has grown up in a digital world far different from any other: they've never known a time without the Internet or smartphones.In that way, they represent a huge opportunity for companies, many of whom will seek new ways of courting this super savvy audience. And it's a big audience: these consumers already represent over $44 billion in spending power, a number expected to increase over the next few years as Gen Z begins to enter the workforce and gain autonomy.

The challenge of reaching Gen Z makes for both good and bad news — the bad being that brands will need to make some significant investments to prepare for Gen Z. The good news is that there lies an incredible opportunity and a first-mover's advantage for companies to form long-lasting relationships with this group of consumers.

There's a lot to learn before you should start forming your strategy, but perhaps the best way to begin is by talking to Gen Z-ers themselves. Luckily, I'm still in high school and a member of this cohort, so I've had the opportunity to grow up and see my generation evolve as consumers.

Here's how brands can prepare for Gen Z:

Understand that the virtual world is their reality

If millennials were the pioneers of the Internet, then Gen Z-ers are the ones who will rule it. For every generation that came before Gen Z, there existed a pre-Internet world. There were no smartphones or chatbots or self-driving cars. Do you remember those days? Gen Z does not.

For Gen Z, the Internet is not merely an addition to life — it is a fundamental part of it. There is no longer a significant separation between digital and reality, these consumers treat both as representations of their own personas. Yes, we live in a world where our Twitter follower count is just as, if not more, important than the amount of close connections we have in real life.

For brands and companies, this means that online interactions can be just as valuable as ones that occur offline.

In order to form a meaningful relationship with Gen Z consumers, brands must prioritize building an authentic online presence. A great way to do this effectively is by leveraging the power of influencers.

Identify key Gen Z influencers

Understanding the importance of online personalities is crucial to understanding the Gen Z puzzle. Youtube Stars, Viners, and Twitter celebrities have real relationships with their viewers. Fifty-seven percent of Gen Z consumers trust endorsements from these online media influencers, according to a study done by the Intercept Group.

Companies that are able to leverage these delicate, yet influential bonds to deliver powerful branded messages will be able to position themselves as leaders and the first to break through the space. Tools like Famebit, that allow you to partner with influencers to deliver branded content, are a great way to utilize all the channels at your disposal and reach a larger portion of Gen Z.

]]>http://fortune.com/2016/10/25/what-brands-can-do-to-prepare-for-gen-z/feed/0Teenage friends hanging out taking selfie and listening to musicpolinamarinova1Why Austin Is the Rockstar of Small-Business Citieshttp://fortune.com/2016/10/10/austin-small-business/
http://fortune.com/2016/10/10/austin-small-business/#respondMon, 10 Oct 2016 16:00:15 +0000http://fortune.com/?p=1821008]]>Small is getting big in Austin. The Texas capital recently was named the #1 place in America to start a business by CNBC, the top city for “small-business vitality” American City Business Journals, and the top city for launching a technology startup by Sungard Availability Services. And that’s not to mention the accolades from the Kauffman Foundation.

How did Austin climb to the upper echelons of the small-business and startup landscape? The reason may surprise entrepreneurs.

In the heart of a state associated with cowboy capitalists, the small-business scene in Austin is thriving in large part by embracing a model that has more to do with a supportive community than rugged individual risk-taking. Put simply, Austin's startups and small-businesses are borrowing from the city's legacy as a place where music lovers connect and build each other up--using the city’s network effects to create something bigger.

"Most people in the Austin business community will make time to help fellow entrepreneurs, even when there's no apparent or immediate benefit for themselves," says Allen Stone, co-founder of PetCru, a two-year-old start-up in the city that provides in-home pet care services. "From the day we launched PetCru, we've had Austin-based pet-related businesses seek us out to support us, participate in events with us, and share industry learnings."

Austin's lessons for success are particularly important as small businesses play an ever larger role in the U.S. economy. While corporate America has been cutting jobs, employment at small business start-ups has increased. Since 1990, as bigger companies cut 4 million jobs, small businesses added 8 million new jobs, according to the U.S. Small Business Administration. Today, the 28 million small businesses in the U.S. account for 66% of all net new jobs, 54% of all U.S. sales, and 30-50% of all commercial space, according to the SBA.

There are a few reasons for the shift to the small. It's become easier than ever to start up a company in an era of e-commerce, online business education and Obamacare health care options. Those seeking to be their own boss have options--they can aim for a steady, modest local business, or attempt to launch the next global phenom a la Twitter, Google or Facebook. Pop culture has added to the allure of entrepreneurship, with shows like Shark Tank, Silicon Valley and The Profit fueling small biz and start-up hopes.

What's more, many young people in particular are saying "no thanks" to jobs in traditional corporate America, having seen their parents laid off and witnessing the way big companies can grind down dreams and preempt work-life balance.

So what is Austin getting right? Let’s take a look at its recent accolades: Besides its CNBC honors, it’s had a long run as the best place to start a small business as ranked by American City Business Journals. A few stats from American City Business Journals capture Austin's remarkable success with small businesses:

7% -- The growth in the number of small businesses based in Austin from 2010-2013, which led the nation by a large margin (Provo, Utah, came in second at 6.8 percent).

Austin had 44,163 small businesses in 2013 -- or 2,342 for every 100,000 residents, a ratio better than most of the 106 metro areas studied.

Austin's gross metropolitan product (a version of gross domestic product, measuring all goods and services produced) grew 18.2 percent from 2011-2014, second in the country behind Dallas.

Part of Austin's formula for a small business surge is fairly well established: create an environment with the right pieces, including investors, good business schools, incubators, not too much red tape, and a critical mass of people with a business idea and big aspirations.

“Austin is the best place in the nation to grow a small business … because our ecosystem has it all: entrepreneurs, incubators, investors, business school involvement and community-building events," says Kevin Johns, Director of the City of Austin's Economic Development Department.

Johns' last ingredient gets at a crucial, less-appreciated part of the city's secret sauce. In Austin, we’ve found that small businesses love to get together, and share an underlying ethos of mutual support. Co-author Matthew Pollard helped organized a Small Business Festival in May of this year, designed to allow local entrepreneurs and small companies the opportunity to share wisdom and resources. And the way the local small-business community rallied behind it was striking--in just two months' time, 70 speakers agreed to present free of charge, 20 additional volunteers signed up to help and 12 venues said they would donate space. Ultimately, the festival had more than 1,200 participants.

This cooperative spirit was largely what drew Matthew to Austin in the first place. An Aussie native and entrepreneur, Matthew chose Austin as a new home because it stood out from his home country and other U.S. cities for avoiding what he terms a "crabs in a bucket culture"--where people give lip service to supporting others but ultimately resent and even try to pull down the successful, just as crabs will do to each other in trying to escape a bucket. The ones that make it out often end up feeling little obligation to help the rest.

It's different in Austin. Austin folks truly celebrate each other's wins. And they have a greater sense of wanting to give back.

“It seems like entrepreneurs in Austin are a small community,” says Jaime Masters, a business coach based in the city and host of the "Eventual Millionaire" podcast. Masters says Austin's business climate is "very unlike any other start up culture I have ever seen. The people here in Austin actually seem to care even more than the small town I came from.”

At Great Place to Work, Ed Frauenheim's organization which partners with Fortune to create rankings on the world’s best workplaces, Austin has obvious appeal. The research and consulting firm decided to host its annual Small & Medium Business Conference in Austin in October in part because the business community's collegial spirit is perfectly aligned with one of the key tenets of a great workplace: a strong sense of camaraderie. It's as if the many networked, supportive small firms in Austin are the employees of a thriving company where people enjoy working together. When team members feel camaraderie and pride on the job in a climate of trust, business results soar--and this is a fair description of Austin's bustling, booming community of entrepreneurs and small firms.

Great Place to Work also wanted to bolster the region's growing cadre of small companies that are working to build great, high-trust workplaces. Ed and his team soon found that local organizations were more than willing to share their knowledge with others. Of course, that spirit of collaborative creativity is famously part of the city's artistic legacy. It is why Austin is considered a mecca for independent music and what led to its South By Southwest festival--which over the years has broadened into interactive media and film and whose flagship event now has a start-up track.

Back in 1986, the founders of South By Southwest worried the Austin community would initially resist their plan for a global music festival. But they were pleasantly surprised. "It was quite the opposite," writes Roland Swenson, SXSW Managing Director. "Almost everyone wanted to be involved."

In a perfect example of the way Austin is blending its business and music cultures, semiconductor maker Cirrus Logic is inviting Great Place to Work conference attendees to experience its on-boarding program, where new employees work with local musicians to craft a song to introduce themselves.

It's just this sort of behavior that is allowing the small to get big best in this city. Rock on, Austin.

Matthew Pollard is an Austin-based business consultant and founder of Austin's Small Business Festival. Ed Frauenheim is Director of Research and Content at Great Place to Work, the longtime research partner for Fortune's annual list of the100 Best Companies to Work Forand other best workplaces lists. Watch for Fortune and Great Place to Work'slist of the Best Small and Medium Workplaces to be published October 12. And we invite Texas-based companies to participate in the first annual Best Workplaces in Texas list, to be published by Fortune and Great Place to Work January 24, 2017.

Consumer advocacy group the Center for Science in the Public Interest (CSPI) claims that statements like “no sugar added” and “only the best ingredients” lead customers to believe that Naked Juice is healthier than it really is. The class action is requesting that PepsiCo change its marketing practices and award damages to people who have bought the products in question.

CSPI points to Naked's Pomegranate Blueberry juice as an example. It’s labeled with “no sugar added,” which is true. However, the complaint asserts that the labeling leads customers to believe it contains less sugar than other drinks, which it says is far from true.

A 15.2 oz bottle of Pomegranate Blueberry juice contains 61 grams of sugar, which is 20 grams more than a 12 oz. can of Pepsi, according to the lawsuit, but the daily recommended intake of sugar is 37.5 grams for a man and 25 grams for a woman.

As for taglines like “only the best ingredients” and “just the healthiest fruits and vegetables,” CSPI says Naked Juice is made predominantly of “cheap, nutrient-poor” juices like orange and apple juice.

“Consumers are paying higher prices for the healthful and expensive ingredients advertised on Naked labels, such as berries, cherries, kale, and other greens, and mango,” CSPI litigation direction Maia Kats said in a statement. “But consumers are predominantly getting apple juice, or in the case of Kale Blazer, orange and apple juice. They're not getting what they paid for.”

PepsiCo denies that its marketing for Naked Juice is misleading. “All products in the Naked portfolio proudly use fruits and/or vegetables with no sugar added, and all Non-GMO claims on label are verified by an independent third party,” the company told Business Insider. “Any sugar present in Naked Juice products comes from the fruits and/or vegetables contained within and the sugar content is clearly reflected on labels for all consumers to see.”

This isn’t the first time that PepsiCo has been sued for health claims about its Naked Juice products. As part of a $9 million settlement in 2013, according to Reuters, the company agreed to stop calling them "all natural."